AGENDA
BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND
DECEMBER 18, 2001

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Item 1 Minutes

Submittal of the Minutes from the August 28, 2001, September 11, 2001 and October 16, 2001 Cabinet Meetings.

(See Attachment 1, Pages 1-40)

RECOMMEND APPROVAL

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Item 2 The Nature Conservancy Charitable Trust Assignment of Option Agreement/St. Joe Timberland Florida Forever Project

REQUEST: Consideration of the acceptance of an assignment of an option agreement to acquire 7,047.90 acres within the St. Joe Timberland Florida Forever project from The Nature Conservancy Charitable Trust.

COUNTY: Liberty

LOCATION: Sections 26 through 28 and 32 through 35, Township 02 North, Range 07 West; Sections 02 through 11 and 14, Township 01 North, Range 07 West

CONSIDERATION: $7,382,626.80 ($7,294,680 for the acquisition; $87,946.80 for the purchase of the option agreement)

* The property was purchased as part of much larger tract.
** $1,047 per acre

STAFF REMARKS: The St. Joe Timberland project is an "A" group project on the Florida Forever Full Fee Project List approved by the Board of Trustees on May 15, 2001. The project contains 70,241 acres, of which 19,457 have been acquired by the Board of Trustees. After the Board of Trustees approves this agreement, 43,736.10 acres or 62 percent of the St. Joe Timberland Florida Forever project will remain to be acquired. Also after approval of this agreement, 4,869.6 acres or 39 percent of the Apalachicola River Florida Forever project, of which these St. Joe Timberland project acres are a part, will remain to be acquired.

Pursuant to a multi-party acquisition agreement entered into between the Division of State Lands (DSL) and The Nature Conservancy, Inc. (TNC), TNC has acquired an option to purchase the parcel from St. Joe Timberland Company of Delaware L.L.C. (St. Joe Company). After this acquisition is approved, the Board of Trustees will acquire the option from TNC for $87,946.80, which represents agreed upon compensation to TNC for overhead associated with acquiring the option. The assignment of option agreement provides that payment to TNC is contingent upon the Board of Trustees successfully acquiring the property from the owner. The assignment of option agreement further provides that in no event will the purchase price for the option and the purchase price of the property exceed the DSL-approved value of the property.

There are eleven outstanding oil, gas and mineral reservations that have been outstanding for many years with the only activity being a Notice of Interest that was filed in 1976 by Amoco Production Company. There is also a 1.3-acre cemetery on the property that will be cut out of the acquisition, and a gas transmission pipeline that extends across the southern portion of the property. The appraisers did consider the outstanding oil, gas and mineral leases, the cemetery and the pipeline in their appraisals. The seller will make every effort to extinguish the
Board of Trustees
Agenda - December 18, 2001
Page Two

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Item 2, cont.

outstanding oil, gas, and mineral rights prior to closing. The Department of Environmental Protection's (DEP) Division of Recreation and Parks (DRP), the future managing agency, will be able to manage the property with the pipeline and the outstanding interests in place, if necessary.

All mortgages and liens will be satisfied at the time of closing. On June 22, 1999, the Board of Trustees approved a staff recommendation to delegate to DEP the authority to review and evaluate marketability issues as they arise on all chapter 259, F.S., acquisitions and to resolve them appropriately. Therefore, DEP staff will review, evaluate and implement the most appropriate resolution for any title or management issues that arise prior to closing.

A title insurance policy and an environmental site assessment will be provided by the seller prior to closing. The purchaser will reimburse the seller's cost of the title insurance policy at closing. A survey of the property will be provided by the purchaser.

This tract of land known as the Sweetwater Creek Tract has great resource significance. It includes most of the creek's watershed which is a freshwater tributary to the Apalachicola River, and contains almost an entire ravine system, with a large complement of federally and state endangered species including the Florida torreya, Apalachicola rosemary, and Florida yew.

The St. Joe Company is one of the largest landowners in Florida. Public acquisition of the St. Joe Timberland project will consolidate the St. Joe Company ownerships already included in other Florida Forever projects, thus helping to preserve large undeveloped tracts of land for native plants and animals and giving the public an opportunity to experience large natural areas throughout north Florida.

This property will be managed by DRP as an addition to Torreya State Park.

This acquisition is consistent with section 187.201(10), F.S., the Natural Systems and Recreational Lands section of the State Comprehensive Plan.

(See Attachment 2, Pages 1- 50)

RECOMMEND APPROVAL

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Item 3 BOE/UF-IFAS/City of Apopka Option Agreement

REQUEST: Consideration of an option agreement to acquire 69.21 acres for the benefit of the Florida Board of Education and the University of Florida/Institute of Food and Agricultural Sciences from the City of Apopka.

COUNTY: Orange

APPLICANT: University of Florida/Institute of Food and Agricultural Sciences (UF/IFAS)

LOCATION: Section 19, Township 21 South, Range 28 East

CONSIDERATION: $1,100,000

* Purchased on January 21, 1988 as part of a 131.2-acre parcel.
** $15,894 per acre
Board of Trustees
Agenda - December 18, 2001
Page Three

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Item 3, cont.

STAFF REMARKS: The Department of Environmental Protection, Division of State Lands (DSL) assisted in negotiating this acquisition. Funds for the acquisition were appropriated during the 1999 Legislative session and are still available.

All mortgages and liens will be satisfied at the time of closing. In the event the commitment for title insurance, to be obtained prior to closing, reveals any encumbrances that may affect the value of the property or the proposed management of the property, staff will so advise the Board of Trustees prior to closing.

A survey, an environmental site assessment and a title insurance policy will be provided by the University of Florida prior to closing.

The parcel is adjacent to the existing UF/IFAS Mid-Florida Research and Education Center property. The Board of Regents and the Legislature in 1986 and 1988 mandated the development of comprehensive centers strategically located throughout the state. These centers would provide critical mass of faculty, facilities and services to increase information and technology transfer capability to clientele, and reduce response time for dealing with state and agriculture industry problems. The proposed acreage will be incorporated with the previously purchased property in order to consolidate the Apopka Research and Education Center, Leesburg Research Unit and the Sanford Research Unit, allowing for maximum utilization of the site, development of the soon-to-be initiated teaching programs and consolidation of the research activities at one site. Also, the land is ideal for the establishment of the vineyard that will be moved from Leesburg.

This property will be managed by the UF/IFAS as part of the Mid-Florida Research and Education Center through a lease to the Florida Board of Education.

This acquisition is consistent with section 187.201(01), F.S., the Education section of the State Comprehensive Plan.

(See Attachment 3, Pages 1-25)

RECOMMEND APPROVAL

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Item 4 DOC/New River Solid Waste Association Conveyance

REQUEST: Consideration of a request to convey a 301.07-acre parcel of state-owned land in Union County which is currently leased to the Department of Correction to New River Solid Waste Association.

COUNTY: Union
Deed No. 30846

APPLICANT: New River Solid Waste Association

LOCATION: Section 04, Township 05 South, Range 21 East

CONSIDERATION: New River Solid Waste Association (NRSWA), which services Union and Baker counties, will credit the Department of Corrections (DOC) in the form of reduced tipping fees in an amount equal to the purchase price plus an interest rate of 4 percent per annum. The property has an appraised value of $475,000. DOC will receive $7,431.46 in credits per month in a manner specified in the amortization schedule attached hereto. This will continue until such time as the $535,065.26 credit ($475,000 plus interest) is extinguished.
Board of Trustees
Agenda - December 18, 2001
Page Four

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Item 4, cont.

STAFF REMARKS: DOC received a request in 1998 from NRSWA to convey this tract in Union County to the NRSWA in order to expand the existing NRSWA landfill. NRSWA has agreed to purchase the property for $475,000, the appraised value, plus interest at a rate of 4 percent per annum. This will continue until such time as credit is extinguished. If DOC discontinues the use of the property as a landfill or the buyer fails to make the landfill available for DOC's use before the credit is extinguished, NRSWA shall deliver a cashier's check or certified check to DOC for the remaining unamortized balance of the purchase price together with accrued interest. Furthermore, if NRSWA fails to make the landfill available for DOC's use before the credit is extinguished, the Board of Trustees, at their sole option, have the right to terminate NRSWA's interest in the property and title will revest in the Board of Trustees..

DOC currently utilizes the property in its agricultural operations. Within 30 days of this conveyance, NRSWA agrees to lease back to DOC 191.60 acres for $1.00 per year for continued agricultural use by DOC. The lease agreement will remain in affect until NRSWA needs the lease lands for expansion of its landfill facilities.

The Acquisition and Restoration Council (ARC) recommended conveyance of the 301.07- acre parcel to NRSWA, on August 22, 2000.

Candler Appraisal Services, Inc., MAI, SRA and State-Certified General Real Estate Appraiser appraised the property, on March 2, 1999. Michael D. Candler and Christopher C. Candler found the market value of the property to be $475,000. The Department of Environmental Protection's (DEP) Bureau of Appraisal has determined the March 2, 1999 appraisal still reflects a fair market for the property.

If approved, this purchase will accomplish the following:

· It will allow NRSWA to expand its landfill to accommodate projected demands.

· DOC will be able to lease 191.60 acres from NRSWA to continue their agriculture program for $1.00 per year.

· DOC will receive a credit each month in the amount of $7,431.46 for a period of 72 months for a total of $ 535,065.26 in reduced tipping fees.

Authorization to sell Board of Trustees-owned uplands requires meeting the directives outlined as follows:

· Pursuant to section 253.111, F.S., the Board of Trustees may not sell any land to which they hold title unless and until they afford an opportunity to the county in which lands is situated to receive such land.

· Pursuant to section 253.115, F.S., the Board of Trustees must provide notice of an application requesting the Board of Trustees to sell, exchange, lease, or grant an easement on, over, under, above, or across any lands to which it holds title.

· The Board of Trustees shall make a determination that the lands are no longer needed and may dispose of them by majority vote.

The above requirements have been met as indicated below:

· This transaction has met the requirements of section 253.111, F.S. State agencies, Union County and the City of Lake Butler were noticed and no interest in purchasing the property has been received.

Board of Trustees
Agenda - December 18, 2001
Page Five

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Item 4, cont.

· This transaction has met the requirements of section 253.115, F.S. No objections were received from property owners within 500 feet of the site.

· On August 22, 2000, ARC approved a request to convey the subject property to NRSWA.

In summary, the requested sale: (1) is in compliance with the requirements of sections 253.111 and 253.015, F.S.; (2) will allow NRSWA to expand its landfill to accommodate projected demands; (3) will benefit DOC, who will receive reduced tipping fees; and (4) will allow DOC to continue their agriculture program at the site.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. DEP has determined that the proposed action is not subject to the local government planning process because the proposed action does not involve a change in the existing land use.

(See Attachment 4, Pages 1-24)

RECOMMEND APPROVAL

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Item 5 City of Bradenton Release of Restrictive Covenants and Reverter

REQUEST: Consideration of a request for a partial release of restrictive covenants and release of reverter approved by the Board of Trustees in the conveyance of 53.78 acres of filled, formerly sovereignty, submerged lands to the City of Bradenton.

COUNTY: Manatee
Deed No. 24748B

APPLICANT: City of Bradenton (City)

LOCATION: Section 26, Township 34 South, Range 17 East

STAFF REMARKS: On August 23, 2001, the Division of State Lands received a request from the City for a partial release of restrictive covenants to allow for the sale of the filled land in order to free up the fee simple title to the property and to provide more flexibility for the enhancement of the City's waterfront. The subject deed restriction specifically states that:

"Said property shall not be subject to sale by the City of Bradenton, and in the event of sale of said lands by the City of Bradenton, title to said property shall revert to the Board of Trustees of the Internal Improvement Trust Fund; and any of the expense arising out of enforcing the reversion contained in this clause shall be borne by the City of Bradenton."

Staff is recommending that the City's request be granted at no consideration to the Board of Trustees, since the City paid the appraised price of $174,500 for the filled, formerly sovereignty, submerged lands. The Board of Trustees is currently not receiving and will not receive any compensation from the lease that was entered into between the City and Bradenton Riverfront, LLC. Since there is no economic value to the Board of Trustees for the filled, formerly sovereignty, submerged lands and the mineral and petroleum interests have also been conveyed to the City, staff recommends that the City's request be granted.

The restrictive covenant of the deed pertaining to the 60-foot-wide strip that constitutes 25 percent of the 240-foot-wide waterfront area will continue to be restricted for public use only.
Board of Trustees
Agenda - December 18, 2001
Page Six

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Item 5, cont.

The Board of Trustees' authorization to partially release restrictive covenants is based on the following:

1. Pursuant to section 253.03, F.S., "the Board of Trustees is vested and charged with the acquisition, administration, management, control, supervision, conservation, protection, and disposition of all lands owned by the state . . ."; and

2. Pursuant to section 18-2.018(3)(e)5, F.A.C., the Board of Trustees may release to the record owner(s) if the Board of Trustees determine that there is no longer any present or future public purpose for retaining them and that the affected parcel contains no fragile environmental, historical, archaeological or recreational resources which would require protection through continued enforcement of restrictions or reverters.

Based upon the above statute and rule requirement, both criteria have been met as indicated below:

· Since the Board of Trustees required that the "no sale" restriction be incorporated into the deed at the time of conveyance, then the Board of Trustees has the authority to release the restrictive covenant if it deems it no longer necessary for the administration and management of said parcel.

· Staff believes that the propose release is in the public interest in light of the following: (1) the Board of Trustees conveyed the subject parcel to the City along with the mineral and petroleum interests associated with the subject parcel; therefore, is no economic value left in the parcel for the Board of Trustees; (2) there is no present or future public purpose that warrants keeping the "no-sale" restriction; (3) because the parcel has been filled, it has no natural resource value; (4) it would not be economically feasible to restore the land to its previously unfilled state; and (5) the 60-foot-wide strip that constitutes 25 percent of the 240-foot-wide waterfront area will continue to be restricted for public use only.

A detailed chronology of events relating to this parcel of land is in the backup.

A consideration of the status of the local government comprehensive plan was not made for this item. The Department of Environmental Protection has determined that release of the deed restriction is not subject to the local government planning process.

In summary, the partial release of restrictive covenants: (1) is in compliance with the requirements of sections 18-2.018(3)(e)5., F.A.C., and 253.03, F.S.; and (2) will give the City the flexibility to enhance the City's waterfront by removing the reverter obstacle that has prevented it.

(See Attachment 5, Pages 1-47)

RECOMMEND APPROVAL

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Item 6 FSU Ringling Center for the Cultural Arts Five-Year Management Plan

REQUEST: Consideration of the five-year Land Management Plan for the Florida State University Ringling Center for the Cultural Arts.

Board of Trustees
Agenda - December 18, 2001
Page Seven

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Item 6, cont.

COUNTY: Sarasota
Lease Number 4292

APPLICANT: Florida State University (FSU)

LOCATION: Sections 01 and 02, Township 36 South, Range 17 East

STAFF REMARKS: On July 20, 2000, the Board of Trustees met and approved a 50-year lease for the Florida State University Ringling Center For The Cultural Arts (Museum). The lease requires the lessee to prepare and submit a land management plan for the leased premises and bring the plan to the Board of Trustees for consideration. This plan does not require review by the Acquisition and Restoration Council.

This plan provides the framework for future decisions regarding use of the building and grounds, and presents a broad-brushed portrait of the Museum as that framework is implemented. The timeline for achieving the recommendations will, at least partially, be subject to external events (the success of fund-raising efforts, the availability of new collections, the interests of key donors, the level of public support, etc.), and therefore, cannot be precisely predicted. However, the general planning horizon anticipates that the major components will be completed over the next five to ten years. Four workshops and one public meeting were held involving FSU staff in Tallahassee and Sarasota.

Discussions focused on:

· existing space, space use and problems;
· current and future exhibits and program; current and future Museum audiences;
· a variety of new facilities that have been proposed to resolve space problems, protect and exhibit collections, and accommodate new programs;
· the role of the Museum in the future;
· capital funding capabilities for future projects;
· methods to improve the Museum's ability to generate operating revenues and other issues of Museum operating support;
· a variety of site issues including future improvement of the landscaped grounds, provision of critically needed site amenities, parking for Museum staff and visitors, and proposed locations for new facilities or expansions to existing facilities.

Based on the input received in the workshops and public meeting, the planning team prepared a series of management activities to address these concerns and outlined them in the plan.

(See Attachment 6, Pages 1-2, Land Management Plan submitted separately)

RECOMMEND APPROVAL

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Item 7 Santa Rosa County Board of County Commissioners Recommended Consolidated Intent

DEFERRED FROM THE NOVEMBER 27, 2001 AGENDA

REQUEST: Consideration of an application for (1) a 20-year public easement for a riprap groin containing 4,500 square feet, more or less; (2) authorization for a access channel containing 128,194 square feet (2.9 acres), more or less; (3) authorization for the severance of 9,035 cubic yards of sovereignty material; and (4) authorization for the removal of the existing weir.
Board of Trustees
Agenda - December 18, 2001
Page Eight

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Item 7, cont.

COUNTY: Santa Rosa
BOT No. 570224261
Easement No. 30692
Application No. 57-0128705-003-DF

APPLICANT: Santa Rosa County Board of County Commissioners

LOCATION: Section 30, Township 02 South, Range 28 West, in East Bay, Class II Waters, within the local jurisdiction of Santa Rosa County
Aquatic Preserve: No
Outstanding Florida Waters: No
Designated Manatee County: No
Manatee Aggregation Area: No
Manatee Protection Speeding Zone: No

CONSIDERATION: (1) $11,293.75 for the severance of 9,035 cubic yards sovereignty submerged lands computed at the rate of $1.25 per cubic yard pursuant to section 18-21.011(3)(a) 3, F.A.C.; and (2) no payment at this time for the public easement. However, upon the adoption of any rule establishing fees for public utilities, payment shall be assessed from the effective date of said rule.

STAFF REMARKS: In accordance with rules adopted pursuant to sections 373.427(2) and 253.77(2), F.S., this "Recommended Consolidated Notice" contains a recommendation for issuance of both the permit required under part IV of chapter 373, F.S., and the authorization to use sovereignty submerged lands under chapter 253, F.S. The Board of Trustees is requested to act on those aspects of the activity, which require authorization to use sovereignty submerged lands. If the Board of Trustees approves the request to use sovereignty submerged lands, and the activity also qualifies for a permit, the Department of Environmental Protection (DEP) will issue a "Consolidated Notice of Intent to Issue" that will contain general and specific conditions. If the Board of Trustees denies the use of sovereignty submerged lands, whether or not the activity qualifies for a permit, DEP will issue a "Consolidated Notice of Denial."

The applicant is proposing to construct a 150-foot-long by 30-foot-wide riprap groin containing 4,500 square feet, dredge 9,035 cubic yards of sovereignty material from a 1,892-foot-long by 50-foot-wide channel containing 128,194 square feet (2.9 acres), and remove the existing weir. Polynesian Isles is a development of approximately 450 units on a labyrinthine canal system on the south shore of East Bay, Santa Rosa County, Florida. The canal system was excavated during the late 1960s and early 1970s. Regulatory controversy surrounded the project resulting in the construction of a berm isolating the canal system from the waters of East Bay. By 1986, the berm had deteriorated and the developer, Mr. Thomas Barba, and the Polynesian Isles Homeowners Association (PIHA) entered into a consent order with the former Department of Environmental Regulation. The consent order, OGC File No. 87-0655, was signed on February 1, 1988. Among other things, the consent order provided for the construction of a "structurally sound navigational weir" with an opening "no wider than 20 feet and no deeper than two feet below mean low water." The consent order also provided for the enactment of Santa Rosa County environmental ordinances restricting development along the canal system and for the construction of a stormwater drainage control system.

On January 5, 1993, the PIHA applied to DEP for permits to widen and increase the depth of the navigational weir and to extend the existing 200-foot access channel. Both parties struggled with the permit application process until March 15, 2000 when DEP entered a consolidated notice of denial. The significant issues associated with the permit denial included the lack of reasonable assurance that water quality within the canal system would meet state standards. Of particular concern was the runoff associated from stormwater in the
Board of Trustees
Agenda - December 18, 2001
Page Nine

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Item 7, cont.

development and the cumulative impacts of septic tanks on adjacent waters. Additional concerns included the excessive depth of some of the canals as well as the removal of the weir structure which would allow for the exchange of pollutants from the canal system into East Bay. On March 24, 2000, the PIHA filed a request for relief under the provisions of the Florida Land Use and Environmental Dispute Resolution Act (section 70.51, F.S.).

On May 22, 2000, a hearing was held in Gulf Breeze, Florida pursuant to Subsection 70.51(15), F.S., to address the issues in this matter. PIHA was seeking the necessary approvals from DEP to allow for navigational improvements within and adjacent to the existing weir. The hearing concluded when the two parties signed a 16-part agreement providing for environmental and navigational enhancements and when Santa Rosa County agreed to enter into a Municipal Services Benefit Agreement (MSBU). A copy of the settlement agreement is attached. The settlement agreement issues are as follows:

1. The PIHA must obtain environmental and proprietary approvals from the state of Florida;
2. The waters of East Bay are conditionally approved for shellfish harvesting and therefore subject to the permit prohibition of Section 312.080(7), F.A.C., necessitating the issuance of a variance;
3. Water quality in the canals does not appear to be in full compliance with State Water Quality Standards;
4. Informational needs and design drawings must be addressed; and
5. Proprietary approval is within the purview of the Board of Trustees. The scope of the Section 70.51, F.S., process is limited to permitting, and therefore, does not include proprietary approval under Chapter 253, F.S.

The improvements to the canal system which were negotiated as part of the settlement agreement include:

1. Replacing the septic tanks with sanitary sewer;
2. Reduction in the need for dredging due to the construction of the groin;
3. Reduction in the amount of stormwater that drains into the canals; and
6. Increased flushing from the shallowing of the canals.

At the mediated hearing between the PIHOA and DEP, DEP entered into a negotiated settlement agreement. As a result of this agreement DEP was able to reverse it's earlier recommendation for denial of the project and, in fact, was able to recommend issuance of the regulatory permit. Specific changes that enabled DEP to reverse positions included bringing all of the canals to a uniform depth of -6 feet mean low water, increasing flushing of the canal system by elimination of the weir thus allowing for greater exchange of canal waters with adjacent East Bay, elimination of all septic tanks within Polynesian Isles, and reduction in the volume of storm water entering the Polynesian Isles canal system. This uniform depth coupled with the removal of the weir would allow for greater water circulation within the canal system. All of the above listed factors cumulatively, were able to provide for adequate and reasonable assurance that water quality standards would not be violated.

The project has been determined to be not contrary to the public interest and will in fact show a net environmental benefit to the overall system. Generally, DEP does not recommend removal of barriers from existing dead-end canal systems; however, this weir is not a complete barrier to the flow of water into and out of the canal system. The weir allows for approximately a two-foot depth of water flow over the weir, which allows the less desirable water in the canals to remain within the canal system. The improvements made (and proposed) to this canal system are unique within the state and, as a result the removal of this weir does not set a precedent for the removal of barriers on other dead end canal systems within the state. These factors leads staff to the conclusion that this project will show an increased
Board of Trustees
Agenda - December 18, 2001
Page Ten

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Item 7, cont.

environmental benefit due to the factors previously mentioned. The environment of East Bay and the Polynesian Isles canal system have the potential to be improved as a result of the implementation of the terms of this settlement and these actions.

DEP's draft wetland resource permit is attached. The easement has been noticed as required by section 253.115, F.S. No objections were received.

(See Attachment 7, Pages 1-38)

RECOMMEND APPROVAL

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Item 8 Becton Springs Consent of Use

DEFERRED FROM THE FEBRUARY 6, 2001 AGENDA
DEFERRED FROM THE MARCH 13, 2001 AGENDA
WITHDRAWN FROM THE MARCH 29, 2001 AGENDA

REQUEST: Consideration of an application for a sovereignty submerged lands consent of use containing approximately 37.5 square feet, more or less, for a proposed wooden slat stream diversion structure.

COUNTY: Washington
Application No. 67-0148551-001-DF

APPLICANTS: Harold W. & Linda Creamer Vickers and Rueben A. & Lorrie A. Laurel
a/k/a Becton Springs

LOCATION: Section 24, Township 03 North, Range 15 West, in Becton Springs, Class III Waters, near the town of Bonifay, within the local jurisdiction of Washington County
Aquatic Preserve: No
Outstanding Florida Waters: No
Designated Manatee County: No
Manatee Aggregation Area: No
Manatee Protection Speed Zone: No

CONSIDERATION: No payment is required.

STAFF REMARKS: This item was withdrawn from the March 29, 2001 Board of Trustees' agenda in order to allow the Florida Fish and Wildlife Conservation Commission (FFWCC) to review and comment on the proposed project.

The applicant is proposing to construct a 410-foot-long by 0.75-foot-wide wooden slat diversion structure, approximately 50 feet of which is located on sovereignty submerged lands, and excavate a 120-foot-long by 25-foot-wide by -1-foot-deep stream by-pass channel, not on sovereign submerged lands, adjacent to Becton Springs. The project is located in central Washington County, south of Interstate 10 on State Road 79, south of Bonifay. Currently, Becton Springs and Holmes Creek are connected via a secondary flowway which carries turbid water, sediments, tannins and other organics into the spring area, resulting in diminished water clarity. The diversion structure and by-pass channel are proposed to prevent debris and turbid water from Holmes Creek from entering the springhead area during periods of high water flow. Diversion of the secondary stream into the proposed by-pass channel will not reduce the flow of water into Becton Springs, nor is it expected to impede navigation, and has been
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Agenda - December 18, 2001
Page Eleven

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Item 8, cont.

designed to allow access by the same-sized boats that may use the existing stream channel. Prior to the commencement of any water-dependent, revenue- generating/income-related activities at Becton Springs, the applicant shall obtain authorization in the form of a lease from the Board of Trustees or Department of Environmental Protection (DEP) staff, as delegated by rule.

DEP issued an Intent to Issue a Wetland Resource Permit and a Draft Permit on December 21, 1999, to construct the 410-foot-long by 0.75-foot-wide wooden slat diversion structure, and to excavate a 120-foot-long by 25-foot-wide by -1-foot-deep stream by-pass channel. The springhead, stream, and Holmes Creek are considered to be sovereignty submerged lands. The by-pass will not be located on sovereignty submerged lands.

DEP has received letters of opposition from the public and the Washington County Board of County Commissioners, and has recently received a letter from FFWCC objecting to the project. Their concerns include: blocking of public access, flooding of private property, shoaling, scouring and erosion within Holmes Creek and the secondary flow way, water quality impacts, the stability of the structure, and impacts to the wetlands. The Washington County Board of County Commissioners has petitioned for an administrative hearing for both the water diversion structure and the by-pass channel, citing all of the above referenced reasons. The administrative hearing is set for January 23, 2002.

The project has been reviewed by DEP's hydrographic section and Washington County's and the FFWCC's concerns were addressed in that review. The flow way that the diversion structure is proposed to cross acts as a floodplain and is located off the main channel of the creek. Therefore, DEP is not concerned that the structure will cause any upstream flooding, erosion or shoaling. The hydrographic section has expressed concern that the structure may potentially fail during flood stages of the creek. The permit has addressed these concerns by adding a special condition that if the diversion structure is damaged by flooding, debris or other events, DEP shall be contacted within 48 hours of the event, and the cause of failure shall be determined. DEP shall also determine if the structure can be rebuilt or if design changes are necessary.

Several individual homeowners and the Bay County Audubon Society have also expressed concerns about the project blocking public access to the springhead. A special permit condition has also been added which prohibits the applicant from constructing any additional structures, which would impede public access to the springhead. The springhead will be accessible via the southerly outflow from the springhead.

The project was not required to be noticed, as the project is for a consent of use.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs determined that the plan is in compliance. The proposed action is consistent with the adopted plan according to a letter received from Washington County.

(See Attachment 8, Pages 1-7)

RECOMMEND APPROVAL SUBJECT TO THE SPECIAL CONSENT OF USE CONDITIONS

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Item 9 DOS/Coconut Grove Playhouse, Inc. Sublease Amendments

REQUEST: Consideration of a request for proposed amendments to a sublease between the Florida Department of State and Coconut Grove Playhouse, Inc.
Board of Trustees
Agenda - December 18, 2001
Page Twelve

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Item 9, cont.

COUNTY: Miami-Dade

APPLICANT: Florida Department of State (DOS)

LOCATION: Section 21, Township 54 South, Range 41 East.

STAFF REMARKS: On August 26, 1980, the Board of Trustees approved the acquisition of the 2.43-acre, more or less, Coconut Grove Playhouse property in Miami. The theater would be leased to a non-profit organization that would operate the theater as part of the then-existing Florida State Theatre Program. The property included the main theatre building, a restaurant, two retail stores, a residence, and parking lot. The Board of Trustees leased the property to DOS under Board of Trustees Lease Number 3185. In 1982, DOS subleased the theater portion of the property to Players State Theatre, Inc., now Coconut Grove Playhouse, Inc. (Playhouse), to operate the theater. DOS entered into a ground sublease for the parking lot portion of the property with the Department of Off-Street Parking of the City of Miami (DOSP) for operation of a parking lot. The DOSP sublease anticipated further subsubleasing of the parking lot to a developer and tenants to operate a retail development on the premises. Although several requests for proposal have been issued, the property has not been developed to date. The theater is in need of extensive renovation, estimated to cost $7.5 million to repair the high use part of the building to habitable standards, and an additional $4 million for remediation of the building systems, as well as upgrades to current usage standards of the theater and storage areas.

In February 1996, DOS filed suit against DOSP for specific performance of the lease provision requiring DOSP to sub-sublease the property for commercial development. DOSP asserted that the ground sublease was illegal and unenforceable and that it had no obligations thereunder. DOS and the DOSP entered into a 1999 settlement agreement that provided for cancellation of the sublease with DOSP. In addition, the settlement agreement required DOSP to convey to the Board of Trustees a 0.04-acre parcel referred to as the Bicycle Shop Property. This parcel was added to the lease between the Board of Trustees and DOS on June 8, 2000. DOSP retained responsibility for operating the parking lot under an operating agreement with DOS that can be terminated at will by either party upon 90 days written notice. DOSP pays DOS $200,000 per year for operation of the parking lot, which is deposited in the Coconut Grove Playhouse Trust Fund (Trust Fund), subject to annual appropriation by the Legislature. All revenues in excess of $200,000 are retained by DOSP for its use.

Although Playhouse was not a party to the settlement agreement, it agreed to execute releases associated with its interest in the property based on an agreement dated May 10, 1999, that recognized the request of Playhouse to amend its sublease to incorporate the following:

19. Add the parking lot and bicycle shop property to the leasehold.

20. Retain the same rental amount.

21. Permit Playhouse to sublease all or a portion of the premises and expand the permitted uses of the property for the development of a mixed use development which may include retail, commercial, residential and hotel uses, subject to approval of DOS, which approval would not be unreasonably withheld or delayed.

22. Deposit of the net proceeds received by Playhouse in connection with any subleasing of space in the Trust Fund for use in accordance with applicable laws.

However, Playhouse has notified DOS that it is no longer interested in building a new theater, but instead seeks only to renovate the Playhouse building. The Playhouse has asserted that DOS has the obligation to repair and maintain the premises, which is disputed by DOS. In
Board of Trustees
Agenda - December 18, 2001
Page Thirteen

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Item 9, cont.

light of Playhouse's change in position and the potential increase in liability to DOS if additional parcels are added to the present lease, DOS is instead proposing that the modified lease not be approved and, ultimately, that DOS' leasehold interest in the premises be assigned to the Board of Trustees for re-release to a more appropriate entity.

The proposed amendments are now being submitted to the Board of Trustees for consideration. DOS recommends a vote against approval of the modified lease. The Department of Environmental Protection (DEP), Division of State Lands (DSL) has reviewed the proposed amendments and does not support modification of the lease for the following reasons::

· DOS has concluded that the development of the property is not within its cultural mission, and that any development of the theater should only be undertaken if it is determined to be in the best interests of the local community, which determination is not within the scope of DOS' powers and duties. A 1997 report prepared by the Office of Program Policy Analysis and Government Accountability recommended that the theater be (1) turned over to local government or to a non-profit organization; (2) sold; or (3) retained in state ownership with continued responsibility for payment of ongoing maintenance costs.

· Several entities have expressed an interest in the property including the City of Miami, Florida International University, and City of Miami Department of Off-Street Parking, although no formal applications have been made to date. The University of Florida and University of Miami may also be interested in a management role.

· DSL believes that an alternative to the current lease arrangement can be successfully negotiated that will address the community's development needs and desires.

If the Board of Trustees approves DOS' request, DOS and DSL will explore other options for developing the property as originally intended by the Board of Trustees. If the Board of Trustees denies DOS' request, DOS and Playhouse will finalize an Amended and Restated Sublease and present it to the Board of Trustees for approval.

Although the authority to approve releases and leases to governmental entities has been delegated to DEP when a request involves an issue of significant public interest it is submitted to the Board of Trustees for approval. The Coconut Grove Playhouse is an important feature in the local community; therefore, any proposal to alter or terminate the current use of the property is a matter of public interest.

Pursuant to section 253.115, F.S., landowners within 500 feet of the property were initially notified that the City proposed to lease the property for a mixed-use development. DSL received six responses either objecting to the proposed development of the property or requesting additional information on plans for the property. A seventh letter from the law firm representing Playhouse questions the City's proposed role in managing the property.

A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. DEP has determined that the proposed action is not subject to the local government planning process.

(See Attachment 9, Pages 1-104)

RECOMMEND DENIAL

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Agenda - December 18, 2001
Page Fourteen

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Item 10 Biscayne Bay National Park "Stilsville"/Biscayne Bay Aquatic Preserve Exchange Discussion

REQUEST: A discussion concerning a proposed exchange of approximately 74.2 acres of sovereignty submerged lands within Biscayne Bay Aquatic Preserve for approximately 74.2 acres of submerged lands within the Biscayne National Park, including seven stilthouse structures known as "Stiltsville," owned by the United States of America.

COUNTY: Miami-Dade

LOCATION: Biscayne Bay near Cape Florida and within Biscayne National Park

CONSIDERATION: Acre-for-Acre

STAFF REMARKS: The area known as Stiltsville was originally constructed over sovereignty submerged lands during the 1960's without authorization from the Board of Trustees. Some of these structures were occupied by small businesses and others were single-family secondary residences. Subsequently the stilthouses were brought under lease with all expiration dates being July 1, 1999. The fees were set initially at $700 annually with the ability to re-visit the fee structure every five years. In 1981 the annual fees were increased to $1000 where they remained until the Board of Trustees adopted a policy to have all stilthouse leases under the same fee structure. These new fee structures can also be re-visited every five years and are adjusted based on the consumer price index.

Pursuant to Dedication No. 26383(3365-13) dated December 4, 1979, and executed on December 31, 1985, the Board of Trustees dedicated certain state lands within Biscayne Bay to the United States Department of Interior, National Park Service (United States) for the purpose of inclusion in the Biscayne National Park for public recreation purposes. The area which was dedicated includes the area containing Stiltsville.

The dedication of the submerged lands from the Board of Trustees' to the United States included 13 active campsite leases granted to the owners of the structures by the Board of Trustees'. The campsite leases were assigned to the United States, so that decisions regarding lease compliance, termination, renewal, and evictions could be made by the manager of the affected submerged lands. After hurricane Andrew in August 1992, six of the thirteen structures were damaged in excess of 50 percent and the leases were canceled. The remaining leases all expired on July 1, 1999. The occupants of the seven remaining stilthouse structures filed a lawsuit against the United States in an effort to retain their use of the structures. The United States then offered a settlement agreement to the owners of the seven-stilthouse structures. Under this settlement agreement there would be no action taken regarding the structures prior to April 1, 2002. In exchange, the pending lawsuits against the United States would be dropped. As a result of this settlement agreement being offered, Tropical Audubon Society sued the federal government, alleging that the Department of Interior didn't have the authority to enter into the settlement agreement.

The Biscayne National Park through the Stiltsville Advisory Committee, which was comprised of delegates from, one United States Senate office, two Congressional offices, the office of the Governor and a majority of the former leaseholders, have drafted two conceptual plans for the management of the Stiltsville structures located within the Biscayne National Park. The preferred plan maintains the structures for public uses such as the artist in residence program, classroom education for civic groups and school children, and a park office to better oversee the northern area of the park. An alternative management plan offers very little change from the existing use, and would allow private leases to civic groups, corporations and private citizens; thereby, the use of the structures would be at the discretion of the lessees. Both of these plans are in the conceptual stage and have not yet been approved. The federal procedure for approval of the management plan will require approximately 120 days.
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Agenda - December 18, 2001
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Item 10, cont.

The National Park Service (NPS) has not yet determined whether the exchange is permitted under the Act of June 28, 1980 (Public Law 96-287) which established the Biscayne National Park. There is a question regarding whether the Act authorizes the federal government to acquire lands within the boundary of the park from the State of Florida only by donation. DEP's Office of General Counsel has discussed this issue with NPS attorneys and anticipates an answer from NPS in the near future.

There has been public support from the South Florida area in favor of maintaining these structures as part of the colorful history of our state. The Department of Environmental Protection (DEP) in a coordinated effort with the United States are exploring the possibility of exchanging parcels of submerged land. The proposed 74.2 acres of submerged land to be exchanged for the Stiltsville tract lies immediately adjacent to the Biscayne National Park's northern boundary within the Biscayne Bay Aquatic Preserve as it currently exists. The addition of this property to the Biscayne National Park would serve to expand the park's northern boundary and ensure the property would remain protected for use by all residents of the state. Upon receiving the 74.2 acres of submerged land containing the stilthouse structures back from the United States, the ability to preserve these structures will be under the direction of the state and the control of these Biscayne Bay Aquatic Preserve waters will be back under the direction of the (DEP) to ensure compliance of our environmental laws and regulations.

If the State of Florida decides to pursue this exchange the existing stilthouses would be given leases in accordance with section 253.03, F.S. The proposed lease agreement would be consistent with other stilthouse leases currently being enforced within the state, thus providing revenue for the protection of these lands. The fees for the existing stilthouse leases are currently $841.42 annually and are scheduled for revision next year. The managing agency for the proposed Stiltsville land exchange area will be DEP's Division of Recreation and Parks. The new leases for the seven-stilthouse structures will be approved by the Southeast district office and then forwarded to Tallahassee for the lease agreements to be drafted. The leases will include the following special conditions to ensure safety and protection of the environment:

· Lessee will be responsible for sewage containment and disposal.
· Structures damaged greater than 50 percent, will not be permitted to be rebuilt and the remaining portions of the structure must be removed by the lessee.
· Stilthouse structures and connecting docks must be maintained in good repair or subject to removal at lessee's expense.

The fee structure for these leases will be modeled after the other stilthouse leases in effect in various counties in South Florida. Appraisals will be conducted of the indivivual houses and the fees will be based on the average of these appraisals. Once the fees have been established they can be adjusted every five years based on the consumer price index.

(See Attachment 10, Pages 1-30)

RECOMMEND DISCUSSION